Fewer Firms Expect To Hire New Workers

Executives Foresee More Job Cutbacks

The spring employment picture is weaker this year than it was in 1994, a survey of Peninsula businesses suggests, but it still reflects the traditional recovery from winter's lull.

In its latest survey of hiring plans, Manpower Inc. reported Monday that 27 percent of local executives expect to add staff in the next three months. Last year at this time 40 percent said they expected to hire.

At the same time, the percentage of local businesses that expect to cut jobs in April, May and June increased to 17 percent from 7 percent in 1994.

The transportation, public utilities, services and public administration industries are expected to grow while construction and education are expected to shrink, according to the survey. Manufacturing and trade reported mixed results.

Manpower service representative Faye Gibbs said the decline in hiring is due to the national economy.

"Keep in mind, in 1994 consumer confidence was at an all-time high," Gibbs said. "People were buying and businesses were taking some chances and doing some hiring."

She predicted the number of businesses planning to hire would continue to decline in 1996 as business executives hold off on decisions until after the November presidential elections.

"In a political year, things tend to be really tight," she said.

Traditionally, businesses hire new workers in the spring, Manpower spokeswoman Kathleen H. Makepeace said. In Manpower's report on first-quarter hiring plans, 23 percent of the local businesses surveyed said they would hire workers, while 20 percent said they would cut staff.

Manpower, a temporary staffing company, conducts the survey based on telephone interviews with more than 15,000 employers in 471 U.S. cities. Locally, it polls three companies in each of nine different industries.

JOB HIRES, CUTS

Percentage of executives expecting to hire or cut staff in the second quarter: